Consistent with its goal of doubling its presence in the U.S.
over the next 20 years, the operational arm of
Dunkin Brands Group, Inc. (
- Dunkin' Donuts - recently inked two multi-store development
deals with existing franchise partners to expand its footprint in
Wisconsin and Michigan.
Dunkin' Donuts penned the first deal with Zee Development Group,
LLC to open 11 units across Wisconsin's Green Bay and Milwaukee
cities. Per the deal, one restaurant is slated to open in 2014
and the others by 2019. Zee Development Group currently owns and
operates around 400 Dunkin' Donuts units in New York,
Massachusetts, Pennsylvania, New Jersey, Connecticut and Central
and Southern Milwaukee.
The restaurant industry in Wisconsin acts as a driving force to
the U.S. economy. Milwaukee and Green Bay are among the largest
cities in the state and home to peers of Dunkin' Donuts such as
Darden Restaurants, Inc. (
Starbucks Corp. (
. As per the National Restaurant Associations, the restaurant
sector in Wisconsin is projected to generate around $7 billion of
total revenues in 2012.
Recently, Dunkin' Donuts opened the first of ten restaurants in
Wisconsin's Appleton city in association with Midwest Mocha LLC.
The second restaurant is slated to open in 2013. As a matter of
fact, Dunkin' Donuts has earlier penned an agreement with the
franchisee partner to open ten units in Green Bay, Appleton and
the surrounding areas of northeast Wisconsin.
The second deal is with Sack of Donuts, LLC for 10 units in Grand
Rapids city of Michigan. The first unit will come up in 2013 and
the rest by 2018. Last quarter, Dunkin' Donuts signed its first
deal with Sack of Donuts to open eight restaurants in Michigan
and Indiana, with one unit already open in Michigan's Kalamazoo
city. The next two will open in Indiana by early 2013.
Michigan has a promising restaurant industry, with a number of
peers of Dunkin' Donuts in Grand Rapids such as
Krispy Kreme Doughnuts, Inc. (
Panera Bread Co. (
. The National Restaurant Associations projects that Michigan's
restaurant industry will generate total revenues of approximately
$12.6 billion in 2012.
Management believes that tremendous franchise opportunities still
exist in the Wisconsin market, particularly in LaCrosse and in
Michigan mainly in Oceana, Newaygo and Montcalm counties.
Dunkin' Donuts is focused on its strategy to seize growth
opportunities and cater to consumer needs of individual markets.
Thus, the company continues to expand through development of
single and multi-unit opportunities. In order to be competitive
and innovative, Dunkin' Donuts offers services through various
types of real estate restaurant formats including free-standing
restaurants, end caps, in-line sites, gas and convenience, travel
plazas, on-university campus and others.
Dunkin' Donuts is the market leader in the coffee, donut, bagel
and muffin categories. In the third quarter, the company's
franchisees and licensees opened 114 new Dunkin' Donuts
restaurants worldwide, including 36 in the international market
and 78 in the U.S. As of September 30, 2012, the company owned
10,283 Dunkin' Donuts restaurants globally.
We currently have a long-term Neutral recommendation on Dunkin'
Brands. Also, it carries a short-term Zacks #3 Rank (Hold).
DUNKIN BRANDS (DNKN): Free Stock Analysis
DARDEN RESTRNT (DRI): Free Stock Analysis
KRISPY KREME (KKD): Free Stock Analysis
PANERA BREAD CO (PNRA): Free Stock Analysis
STARBUCKS CORP (SBUX): Free Stock Analysis
To read this article on Zacks.com click here.